Platinum Equity nears deal for 50% stake in Nestlé water business at $5.71 billion valuation

Private equity firm Platinum Equity is close to acquiring about a 50% stake in Nestlé’s European water business in a deal that would value the joint venture at nearly €5 billion ($5.71 billion), the Financial Times reported on Wednesday.

The companies are seeking to finalise the agreement before Nestlé reports its first-half earnings on Thursday, according to the report. Nestlé declined to comment.

The proposed transaction would include water brands such as Perrier, San Pellegrino and Acqua Panna, while allowing Nestlé to retain partial ownership of the business.

Nestlé has been restructuring its portfolio under CEO Philipp Navratil, who is seeking to improve growth and profitability by concentrating on the company’s core brands.

Reuters reported in May last year that Nestlé had appointed Rothschild to explore either a partnership or the sale of a stake in its European water division while retaining an ownership interest.